China Unveils $47.5B 'Big Fund III' to Propel AI Chip Industry
May 29, 2024China has launched its third state-backed semiconductor fund, the China Integrated Circuit Industry Investment Fund, with a record capital of $47.5 billion.
The fund, known as 'Big Fund III,' will focus on AI-based semiconductors and manufacturing equipment to boost the domestic semiconductor sector.
Major shareholders include the Chinese Ministry of Finance and China Development Bank Capital.
The fund has previously supported major chip manufacturers in China and plans to hire institutions to invest the new capital.
This move aligns with President Xi Jinping's goal of achieving self-sufficiency in semiconductor technology.
The establishment of the fund has led to a rise in Chinese chip shares, signaling China's commitment to advancing its technological capabilities and reducing external dependencies.
Summary based on 15 sources
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Sources
Fortune • May 27, 2024
Beijing answers Biden's CHIPS Act with the $47.5 billion Big Fund IIITimes Of India • May 27, 2024
China announces this $47.5 billion plan to take on US' attack on its chip industryThe Straits Times • May 27, 2024
China invests $65.4 billion in its biggest-ever chip fund to back nation’s firmsBenzinga • May 27, 2024
China Launches $47.5B State Fund To Bolster Semiconductor Industry Amid Global Chip War